Nelson, in his 14th NBA season, became the top free agent on the market and received interest from contenders such as the Houston Rockets and Oklahoma City Thunder and several other franchises that hoped to add the respected and accomplished veteran. But for Nelson, the Pelicans represent an opportunity to play significant minutes and provide leadership.

Nelson, 35, averaged 9.2 points and 5.1 assists and shot 38.8 percent from 3-point range in 75 games last season. He made the All-Star team in 2009 and has averaged 11.7 points and 5.2 assists with Orlando, Dallas, Boston and Denver.

The Pelicans plan to waive Jordan Crawford to clear a roster spot, league sources said.